Halozyme Announces Q3 2024 Financial and Operating Results

Halozyme Therapeutics, Inc. has announced its financial performance for the third quarter ending September 30, 2024, noting significant growth and achievements. The company reported a total revenue increase of 34% year-over-year, reaching $290 million. Royalty revenue saw a 36% rise to $155 million. Net income surged by 67% to $137 million, while adjusted EBITDA grew by 60% to $184 million. Furthermore, GAAP diluted earnings per share (EPS) increased by 72% to $1.05, and non-GAAP diluted EPS rose by 69% to $1.27.

The company has revised its financial guidance for 2024, projecting total revenue between $970 million and $1.02 billion, demonstrating an estimated year-over-year growth of 17% to 23%. Adjusted EBITDA is expected to be in the range of $595 million to $625 million, indicating a growth of 40% to 47%, and non-GAAP diluted EPS is anticipated to be between $4.00 and $4.20, representing a growth of 44% to 52%.

Dr. Helen Torley, President and CEO of Halozyme, highlighted the strong execution and momentum within the business, which has led to the positive financial outcomes. She emphasized the role of the ENHANZE pipeline and new global licensing agreements in their growth trajectory. Dr. Torley also noted the approval of Roche’s TECENTRIQ HYBREZA and OCREVUS ZUNOVO in the U.S., which has reinforced ENHANZE's consistent phase 3 study and regulatory success.

In the third quarter, Halozyme achieved key milestones with several partners. For instance, argenx initiated two studies with VYVGART® Hytrulo using ENHANZE, targeting ocular myasthenia gravis and antibody-mediated rejection in kidney transplant recipients. Janssen received European Commission approval for DARZALEX® SC in newly diagnosed multiple myeloma patients eligible for autologous stem cell transplant, in combination with other therapies. Moreover, argenx expanded its global collaboration with Halozyme, nominating four additional targets and providing exclusive access to ENHANZE technology.

Additionally, ViiV Healthcare expanded its collaboration with Halozyme to include an undisclosed target, and Roche received FDA approval for OCREVUS ZUNOVO and TECENTRIQ HYBREZA utilizing ENHANZE technology. Janssen also submitted a supplemental Biologic License Application for DARZALEX FASPRO in combination with other therapies for newly diagnosed multiple myeloma patients.

Financially, Halozyme reported a significant increase in revenue to $290.1 million for the third quarter of 2024, compared to $216.0 million in the same period the previous year. This rise was primarily driven by an increase in royalty and milestone revenue, with royalties alone amounting to $155.1 million. The cost of sales decreased to $49.4 million, largely due to lower device and bulk sales costs. Other expenses, such as amortization of intangibles, research and development, and selling, general, and administrative expenses, saw slight variations compared to the previous year.

Operating income for the quarter was $163.2 million, a substantial increase from $88.3 million in the third quarter of 2023. Net income also saw a significant rise to $137.0 million from $81.8 million in the previous year. Adjusted EBITDA increased to $183.6 million, up from $114.9 million in the same period in 2023.

As of September 30, 2024, Halozyme's cash, cash equivalents, and marketable securities totaled $666.3 million, up from $336.0 million at the end of 2023, primarily due to cash generated from operations.

Halozyme's 2024 financial outlook has been updated, with expected total revenue of $970 million to $1.02 billion, royalty revenue of $550 million to $565 million, adjusted EBITDA of $595 million to $625 million, and non-GAAP diluted EPS of $4.00 to $4.20. This guidance reflects the company's anticipations for continued growth, driven by increases in royalty revenue, collaboration revenue, and product sales.